The value of a car produced and sold in 2000 and sold again to a second owner in 2008 would be included in GDP for:
A) 2000 only.
B) 2008 only.
C) both 2000 and 2008.
D) either 2000 or 2008,but not both.

Question

Quizplus · Accepted Answer

GDP measures the value of goods and services produced within a country in a specific period. The car's value is included in GDP when it is first produced and sold in 2000. Subsequent sales of used goods, like the car being sold again in 2008, do not contribute to GDP as they do not represent new production.

The Value of a Car Produced and Sold in 2000